The U.S. Department of the Treasury has announced that it will stop producing new pennies starting in early 2026. While new pennies won’t be produced, existing pennies will remain legal tender, and you can still use them for purchases and deposits.
Here’s what this means for you and how Mercantile Bank is preparing for a smooth transition.
The decision is based on two main factors:
Yes! Pennies will remain legal tender. You can continue to use them for purchases and deposits.
Absolutely. We will continue to accept pennies for deposits just like before.
Not for long. Banks can only order from existing Federal Reserve inventory until supplies run out. Once that happens, pennies will no longer be available for cash transactions and change orders.
Cash transactions will be rounded down to the nearest five cents. This applies only to cash payments—electronic transactions will remain unchanged.
No, we ask that you do not order or hold extra supplies. Inventory will naturally phase out over time.
If you accept cash payments, you may need to adjust your Point of Sale (POS) system to handle rounding. We recommend planning ahead.
We’ll continue to share updates from the U.S. Treasury and Federal Reserve. Check back on our blog or visit Treasury.gov for official information.